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Assume that interest rate parity exists and will continue to exist. The U. S. interest rate was 4% while the Singapore interest rate was 5% at the beginning of the month. Assume the Singapore interest rate rises while the U. S. interest rate declines over the month. Based on this information, the forward rate of the Singapore dollar exhibited a at the beginning of the month, and by the end of the month.
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Assume that interest rate parity exists and will continue to exist. The U. S. interest rate was 4% w...
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